Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2014

The following tables reflect the notional amounts and fair values for all derivative instruments included in the Condensed Consolidated Balance Sheets as of:

				Fair Value
		Notional		Derivative	Derivative
June 30, 2014 ($ in millions)		Amount		Assets	Liabilities
Qualifying hedging instruments
Fair value hedges:
Interest rate swaps related to long-term debt	$	3,855		350	7
Total fair value hedges				350	7
Cash flow hedges:
Interest rate swaps related to C&I loans		2,200		35	-
Total cash flow hedges				35	-
Total derivatives designated as qualifying hedging instruments				385	7
Derivatives not designated as qualifying hedging instruments
Free-standing derivatives - risk management and other business purposes
Interest rate contracts related to MSRs		5,362		176	5
Forward contracts related to held for sale mortgage loans		1,074		-	11
Stock warrant associated with Vantiv Holding, LLC		685		412	-
Swap associated with the sale of Visa, Inc. Class B shares		895		-	54
Total free-standing derivatives - risk management and other business purposes				588	70
Free-standing derivatives - customer accommodation:
Interest rate contracts for customers		27,383		300	309
Interest rate lock commitments		836		17	-
Commodity contracts		3,684		100	100
Foreign exchange contracts		18,121		175	142
Total free-standing derivatives - customer accommodation				592	551
Total derivatives not designated as qualifying hedging instruments				1,180	621
Total			$	1,565	628


				Fair Value
		Notional		Derivative	Derivative
December 31, 2013 ($ in millions)		Amount		Assets	Liabilities
Qualifying hedging instruments
Fair value hedges:
Interest rate swaps related to long-term debt	$	3,205		292	13
Total fair value hedges				292	13
Cash flow hedges:
Interest rate swaps related to C&I loans		2,200		40	21
Total cash flow hedges				40	21
Total derivatives designated as qualifying hedging instruments				332	34
Derivatives not designated as qualifying hedging instruments
Free-standing derivatives - risk management and other business purposes
Interest rate contracts related to MSRs		4,092		141	14
Forward contracts related to held for sale mortgage loans		1,448		13	1
Stock warrant associated with Vantiv Holding, LLC		664		384	-
Swap associated with the sale of Visa, Inc. Class B shares		947		-	48
Total free-standing derivatives - risk management and other business purposes				538	63
Free-standing derivatives - customer accommodation:
Interest rate contracts for customers		28,112		329	339
Interest rate lock commitments		924		12	1
Commodity contracts		3,300		66	65
Foreign exchange contracts		19,688		276	252
Total free-standing derivatives - customer accommodation				683	657
Total derivatives not designated as qualifying hedging instruments				1,221	720
Total			$	1,553	754

The following table reflects the change in fair value of interest rate contracts, designated as fair value hedges, as well as the change in fair value of the related hedged items attributable to the risk being hedged, included in the Condensed Consolidated Statements of Income:

	Condensed Consolidated		For the three months		For the six months
	Statements of		ended June 30,		ended June 30,
($ in millions)	Income Caption		2014	2013	2014	2013
Interest rate contracts:
Change in fair value of interest rate swaps hedging long-term debt	Interest on long-term debt	$	29	(127)	64	(194)
Change in fair value of hedged long-term debt attributable to the risk being hedged	Interest on long-term debt		(30)	125	(67)	191

The following table presents the net gains (losses) recorded in the Condensed Consolidated Statements of Income and accumulated other comprehensive income in the Condensed Consolidated Statements of Comprehensive Income relating to derivative instruments designated as cash flow hedges:

		For the three months		For the six months
		ended June 30,		ended June 30,
($ in millions)		2014	2013	2014	2013
Amount of pretax net gains (losses) recognized in OCI	$	19	(2)	34	(1)
Amount of pretax net gains reclassified from OCI into net income		11	10	21	31

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for risk management and other business purposes are summarized in the following table:

	Condensed Consolidated		For the three months		For the six months
	Statements of		ended June 30,		ended June 30,
($ in millions)	Income Caption		2014	2013	2014	2013
Interest rate contracts:
Forward contracts related to mortgage loans held for sale	Mortgage banking net revenue	$	(11)	174	(23)	171
Interest rate contracts related to MSR portfolio	Mortgage banking net revenue		38	(30)	61	(37)
Foreign exchange contracts:
Foreign exchange contracts for risk management purposes	Other noninterest income		(5)	3	(1)	5
Equity contracts:
Stock warrant associated with Vantiv Holding, LLC	Other noninterest income		63	76	28	110
Swap associated with sale of Visa, Inc. Class B shares	Other noninterest income		(16)	(5)	(15)	(12)

Risk ratings of the notional amount of risk participation agreements under this risk rating system are summarized in the following table as of:

		June 30,	December 31,
($ in millions)		2014	2013
Pass	$	1,194	1,153
Special mention		2	38
Substandard		37	12
Total	$	1,233	1,203

The net gains (losses) recorded in the Condensed Consolidated Statements of Income relating to free-standing derivative instruments used for customer accommodation are summarized in the following table:

			For the three months		For the six months
	Condensed Consolidated		ended June 30,		ended June 30,
($ in millions)	Statements of Income Caption		2014	2013	2014	2013
Interest rate contracts:
Interest rate contracts for customers (contract revenue)	Corporate banking revenue	$	5	9	9	14
Interest rate contracts for customers (credit losses)	Other noninterest expense		(1)	(2)	(1)	(3)
Interest rate contracts for customers (credit portion of
fair value adjustment)	Other noninterest expense		-	3	1	4
Interest rate lock commitments	Mortgage banking net revenue		38	(58)	74	(2)
Commodity contracts:
Commodity contracts for customers (contract revenue)	Corporate banking revenue		2	2	3	4
Commodity contracts for customers (credit portion of
fair value adjustment)	Other noninterest expense		-	(1)	-	(1)
Foreign exchange contracts:
Foreign exchange contracts - customers (contract revenue)	Corporate banking revenue		17	20	32	38
Foreign exchange contracts - customers (credit portion of
fair value adjustment)	Other noninterest expense		-	(1)	2	(1)